Report Title:

PEG Access Organizations, Audit

Description:

Requires the auditor to perform a financial and managerial audit of the PEG access organizations.

THE SENATE

S.B. NO.

1602

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PUBLIC, EDUCATION, AND GOVERNMENT ACCESS ORGANIZATIONS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Hawaii's four public, education, and government access organizations, Olelo Community Television; Akaku: Maui Community Television; Ho'ike: Kauai Community Television; and Na Leo o Hawaii provide equipment and infrastructure for PEG access in all four counties. They are charged with the mission of providing nondiscriminatory access to facilities and channels and serving all three segments – public, education, and government – equitably. Yet input from the public on its needs has been virtually ignored, while the educational and governmental entities' requests have been fulfilled and continue to be the major focus of the access organizations.

Access organizations have been alleged to be spending inordinate amount of funds on in-house productions, which have preempted scheduling from certified clients who pay out of pocket, turning the face of public, education, and government access toward the corporate world and away from underserved segments of the public.

Allegations of wrongdoing have arisen in regard to the department of commerce and consumers affairs, which regulates the access organizations. These allegations include possible partisan preferential treatment of candidates for recent state and federal elections, allegations of malfeasance by department of commerce and consumer affairs personnel, and forcing the access corporations to change their bylaws to give majority board appointment power to the director of commerce and consumer affairs. There was also an allegation of wrongdoing in the governor's refusal to appoint members to the cable advisory committee during crucial times.

Allegations have also arisen against the access organizations themselves, including accusations that there was interference with nondiscriminatory access to facilities and channels, closing meetings to the public, and an emphasis on the access organizations creating their own content rather than facilitating the public to create their own.

Furthermore, now that there is only one statewide cable monopoly, there is concern that self-dealing can and will arise between the department of commerce and consumer affairs, the access organizations boards, the majority of which are appointed by the department of commerce and consumer affairs and the minority of which are appointed by the cable company, and the cable company.

The State does not stand helpless in the face of these serious allegations of impropriety and wrongdoing. These organizations, while ostensibly private, are so closely entwined with the State that the office of information practices recently issued an opinion stating that two of them should be considered agencies of the State for the purposes of having to comply with chapter 92F, Hawaii Revised Statutes, the Uniform Information Practices Act. The office only considered two of the organizations as opinions were only sought on two, but the office's rationale would apply equally to all four organizations. The legislature finds that as the access organizations are state agencies for the purposes of the Uniform Information Practices Act, so too are they state agencies for the purpose of financial and management audits. The purpose of this Act is to require audits of the access organizations.

SECTION 2. The auditor shall perform financial and management audits of Olelo Community Television; Akaku: Maui Community Television; Ho'ike: Kauai Community Television; and Na Leo o Hawaii. The auditor shall report its findings to the legislature no later than July 1, 2004. The auditor may audit each organization individually.

SECTION 3. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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